At the year-end, if a physical count reveals that office supplies worth $7,000 were used but no entry was made, what will be the likely issue?

When no entry is made for the use of office supplies worth $7,000, the accounting records do not reflect this expense. Although the actual supplies have been consumed, the transaction has not been recorded as a reduction in assets and an increase in expenses. This omission means that the accounts do not show the correct amounts for both the office supplies asset account and the expenses account.

However, the trial balance comprises the totals of all debits and credits in the accounting records. In this case, since there has been no entry to record the expense, both the debits (for supplies) and credits (likely cash or accounts payable) remain unchanged, leading to no discrepancy in the overall balance of the trial balance. Therefore, because the trial balance isn't adjusted and no errors in double-entry accounting occurred due to this omission, it remains balanced despite the lack of appropriate expense recognition.

As a result, the right assertion is that the trial balance will show no issues related to this event, aligning with the understanding that the omission has not created an imbalance in the accounting records.